Which contract structure is the most appropriate for ZYX?

SIAMRUS has created a report that suggests moving to several contracted service providers and an external service integrator ZYX has decided to separate the services into providers for.

– hosting

– networks

– application development and support

– desktop and laptop support

In order to avoid reliance on single providers, the CEO wants to use two different providers for each of these types of services. The CEO also wants to ensure that the costs for the service integrator are as low as possible

It is clear that there is a single structure needed for the service integrator contract.

Which contract structure is the most appropriate for ZYX?
A . Adopt the same structure for the service provider contracts
B . Adopt a single structure for the service provider contracts.
C . Adopt a few different structures for the service provider contracts
D . Adopt custom structures for each service provider contract

View Answer

Answer: B

Explanation:

Contract Structure Importance: A single contract structure ensures consistency, simplifies management, and reduces complexity. This aligns with the CEO’s goal of minimizing costs for the service integrator.

Multiple Providers: Using two providers for each service type necessitates clear and consistent contract terms to avoid confusion and ensure all providers operate under the same expectations and guidelines.

Consistency and Simplicity: A single structure across all service provider contracts ensures that all providers are subject to the same terms and conditions, making it easier for the service integrator to manage and enforce contracts.

Cost Management: Consistent contract structures streamline administration, reduce legal costs, and simplify the integration process, contributing to lower overall costs for the service integrator. Avoiding Customization: Customizing contracts for each provider increases complexity and administrative overhead, which can lead to higher costs and potential inconsistencies in service delivery.

Conclusion: Adopting a single contract structure for all service providers is the most appropriate

approach for ZYX, ensuring consistency, reducing complexity, and aligning with the CEO’s objective of

cost minimization.

Reference: SIAM Foundation Body of Knowledge (BoK), Chapter on Contract Management

SIAM Professional Body of Knowledge (BoK), Governance and Contract Structure Sections